Moody's: Royal Caribbean outlook stable

Moody's Investors Service said it changed the outlook for Royal Caribbean Cruises Ltd. to stable from negative and affirmed the company's corporate family and probability-of-default ratings at Ba2, speculative-grade liquidity rating at SGL-3 and senior unsecured notes at Ba3 (LGD4, 64%).

The agency said the outlook change reflects improving cruise ticket pricing and higher booking volumes - key factors that indicate cruise demand is rising. Moody's anticipates that Royal Caribbean will generate positive free cash flow by 2011 as earnings grow and capital spending for new ships declines.

The Ba2 corporate family rating considers the company's position as the second-largest global cruise operator, its diversification by market segment and Moody's stable outlook for the cruise sector, the agency said.

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